Agenda and minutes

Please note this meeting may be filmed or recorded by the Council for live or subsequent broadcast via the Council’s internet site or by anyone attending the meeting using any communication method.  Although we ask members of the public recording, filming or reporting on the meeting not to include the public seating areas, members of the public attending the meeting should be aware that we cannot guarantee that they will not be filmed or recorded by others attending the meeting.  Members of the public participating in the meeting (e.g. making deputations, asking questions, making oral protests) should be aware that they are likely to be filmed, recorded or reported on.  By entering the meeting room and using the public seating area, you are consenting to being filmed and to the possible use of those images and sound recordings.

The Chair of the meeting has the discretion to terminate or suspend filming or recording, if in his or her opinion continuation of the filming, recording or reporting would disrupt or prejudice the proceedings, infringe the rights of any individual, or may lead to the breach of a legal obligation by the Council.

The Chair referred Members present to agenda item 1 as shown on the agenda in respect of filming at this meeting, and Members noted the information contained therein.

Apologies for absence were received from Cllr Ejiofor and Cllr Elliott.

The Chair will consider the admission of any late items of urgent business. (late items will be considered under the agenda items where they appear.  New items will be dealt with at item 13)

There were no items of urgent business.

There were no declarations of interest.

There were no such items.

To consider and agree the minutes of the meeting held on 22 June 2015.

RESOLVED

That the minutes of the meeting of the Corporate Committee held on 22 June 2015 be approved as a correct record and signed by the Chair.

The Committee wished to place on record its thanks to Kevin Bartle for the excellent quality of support and guidance he had given to Members, and that he would be greatly missed when he left the Council later in the year.

To update the Committee on the Council’s treasury management and performance in the three months to 30^th June 2015 in accordance with the CIPFA Treasury Management Code of Practice.

The Committee received the Treasury Management update report for the three months to 30^th June 2015, presented by George Bruce, Head of Finance – Treasury and Pensions.

In response to a question from the Committee regarding interest rates for new borrowing, Mr Bruce advised that rates were currently attractive but were expected to rise in due course; it was noted that the specific rates for any forthcoming capital borrowing would depend on the individual project.

The Committee asked about the Council’s deposits, and the recent downgrading of Barclays Treasury to A-. Mr Bruce advised that A- was the minimum rating acceptable and that Barclays remained on the investment list as it met the criteria required by the Council. It was noted that the Council targeted an average credit score across its deposits.

RESOLVED

That the Committee note the Treasury Management activity undertaken during the three months to 30^th June 2015 and the performance achieved.

Report of the Assistant Director – Finance to present the Statement of Accounts 2014/15 following the completion of the external audit and to consider the statutory Annual Report to those charged with Governance from Grant Thornton which reports on their annual audit of the Council’s statutory accounts, value for money and other relevant information.

The Committee received the report on the Statement of Accounts 2014/15 and Audit Findings Report, presented by Tracie Evans, Chief Operating Officer, Neville Murton, Head of Finance – Accounting and Control, and Paul Jacklin, Grant Thornton.

In presenting the Audit Findings Report, Mr Jacklin gave an overview of the audit findings, value for money conclusion and the audit fee as set out in the report. Mr Jacklin advised that there were no unadjusted errors that the Committee needed to be made aware of. It was noted that, from 2017/18, the audit of the accounts would need to be completed by the end of July instead of September and that this was something that the Council would need to give consideration to. The Committee noted that it had not yet been possible for Grant Thornton to issue the certificate for the 2013/14 audit due to outstanding objections raised on the accounts, however it was anticipated that this would be concluded soon.

The Committee asked about the audit recommendation in respect of debt over two years old, and what these debts comprised of. It was reported that these debts were from a variety of sources, including Council Tax arrears and parking charges. Committee Members advised that they were aware that the Council was sometimes able to recover old debts through legal proceedings, and therefore asked for more information regarding this recommendation. Mr Jacklin advised that the recommendation was that the Council should assess the likelihood that old debts could be recovered on a case by case basis, and write off those debts assessed as unrecoverable. It was confirmed that there was no suggestion that the Council should not pursue debts that were potentially recoverable.

The Committee expressed concern regarding the amount of unrecovered debt over two years old, and asked for information on what the Council was doing to recover this money. Ms Evans reported that a dedicated project team had been established to focus on assessing the recoverability of old debts, and to improve the systems used for chasing and collecting money owed to the Council. It was acknowledged that increased automation of debt collection processes had resulted in some loss of focus on this area, and that there was now a recognised need to review these arrangements and improve the effectiveness of the systems in place. In response to concerns raised by Members of the Committee regarding the size of the team previously working on collection of debts, Ms Evans confirmed that a business case had been developed for increased resource in this area, and it was as a result of this that the current project team had been established.

In response to a question regarding the Council’s performance on debt collection, Paul Dossett, Grant Thornton, advised that the Council generally performed well on this, but that historically there had not been sufficient focus on the collection of old debts. In response to a question regarding the cut-off point of two years, Mr Dossett advised that Grant Thornton  ...  view the full minutes text for item 27.

Report of Grant Thornton.

The Committee considered the external auditors’ update report, presented by Paul Dossett, Grant Thornton. The Committee was asked to note in particular the work on certifying the 2013/14 audit which it was anticipated would be completed shortly, and the Housing Benefit certification work, a report on which would be presented to the next meeting of the Committee. The report also gave an overview of other documents and reports which might be of interest to the Committee.

In response to a question from the Committee regarding the inclusion of the section on devolution, Mr Dossett advised that this was to draw the Committee’s attention to the LGA white paper on devolution and that Grant Thornton would also be issuing a report on this subject shortly.

The Chair thanked Grant Thornton for this update, and for their work in respect of the audit of the Statement of Accounts.

RESOLVED

That the content of the report be noted.

Report of the Assistant Director of Corporate Governance to update the Committee on the audit coverage and counter-fraud work and the actions taken during the quarter to ensure audit recommendations are implemented and address the outstanding recommendations during the first quarter 2015/16.

The Committee considered the internal audit progress report for quarter 1 2015/16, as presented by Anne Woods, Head of Audit and Risk Management. Ms Woods advised the Committee that the outstanding recommendation from 2013/14 in respect of the Pan London (Major) Equipment Service had now been confirmed as completed following the drafting of the report. In response to a question from the Committee regarding the reason for the delay in completing this recommendation, Ms Woods advised that the matter had been chased by the Council, but that she was not aware of the reason for the delay.

The Committee asked about the follow up audits reported on, and the reasons for some audit recommendations being no longer applicable. Ms Woods advised that there were a number of reasons for this, for example in this quarter there were a number of recommendations relating to manual processes, which had subsequently been replaced by a new computer system. In response to a question regarding the 88% compliance rate, Ms Woods advised that, given that some recommendations ceased to be applicable, it was not always possible to achieve 100% compliance. It was reported that the Council’s focus was on ensuring 100% compliance with priority 1 recommendations and that this had been achieved in this quarter.

The Committee asked whether further action was taken against employees who resigned as a result of investigations into financial irregularities. Ms Woods advised that no further action would be taken where no financial implications for the Council had been identified, but that action would be taken against former employees to recover any money owed to the Council identified during the course of an investigation. 

The Committee asked about the length of tenancy fraud cases – it was reported that some were resolved within days whereas others could take up to three years to progress through legal proceedings and Judicial Review. It was also noted that some investigations and prosecutions were undertaken jointly with other authorities and that this could increase the risk of delay. It was noted that the target for the completion of an investigation was eight weeks, and that this was achieved in 99% of cases, but that especially complex investigations could take up to three months to complete.

The Committee noted the summary of the audit of Pendarren Outdoor Education Centre, and asked what was being done to address the issues identified. Ms Woods advised that support mechanisms and guidance were now in place to support management at the centre, specifically in relation to financial governance, and a detailed action plan had been drawn up.

In response to a question from the Committee regarding the work undertaken to prevent money laundering, Ms Woods confirmed that the Council had a statutory duty to investigate and validate sources of funds, and would be liable in the event that due investigation was not carried out. In respect of Right to Buy applications, the Council undertook investigation of the sources of funding being proposed for deposits and looked for an  ...  view the full minutes text for item 29.

Report of the Assistant Director of Corporate Governance for the Committee to review and approve the updated Corporate Anti-Fraud and Corruption Policy and Strategy together with the appended Fraud Response Plan, Whistle-blowing Policy, Sanctions Policy, Anti Money Laundering Policy and Anti Bribery Policy.

The Committee considered the report on the Corporate Anti-fraud and Corruption Policy and Strategy, as presented by Anne Woods, Head of Audit and Risk Management.

The Committee asked about the Council’s approach to prevention of money laundering, and whether it was as systematic in its investigations across all departments as it was in relation to Right to Buy applications. Ms Woods advised that it was difficult to identify every possible process where money laundering was a risk, however staff in departments where they were likely to encounter significant financial transactions were briefed on the anti-money laundering policy, and due diligence was undertaken as part of the process for adding any organisation onto the Council’s vendor management system. The Committee asked about regeneration projects and the risk of money laundering associated with property investment from overseas investors; Tracie Evans, Chief Operating Officer, advised that the Council would have responsibility for undergoing the necessary checks to prevent money laundering when they were the vendor, but that where a private company was selling property within the borough, the responsibility rested with that company, in accordance with legislation.

Referring to the Anti-fraud Strategy, the Committee asked whether it would be possible for senior officers’ declarations of interest and registers of gifts and hospitality to be made public, in the same way as Councillors’ records were. Ms Evans agreed that transparency was essential within the Council and that the best way of making these records public for senior officers was currently being considered. It was anticipated that this would be achieved by the end of the year. The Committee noted that this was particularly important given the levels of decision making delegated to senior officers.

RESOLVED

That the Committee approve the updated Corporate Anti-fraud and Corruption Policy and Strategy, together with the appended Fraud Response Plan, Whistle-blowing Policy, Sanctions Policy, Anti-money Laundering Policy and Anti-bribery Policy.

Report of the Assistant Director of Corporate Governance to inform the Committee of Non-Executive delegated decisions and significant actions taken by Directors, and any urgent actions taken by Directors in consultation with the Chair of the Corporate Committee since the previous meeting.

The Committee noted the content of the report.

To consider any items admitted at item 3 above.

There were no new items of urgent business.

26 November 2015, 7pm.

26 November 2015, 7pm.

The meeting closed at 8.55pm.